Page:United States Statutes at Large Volume 116 Part 1.djvu/422

 116 STAT. 396 PUBLIC LAW 107-171—MAY 13, 2002 7 USC 2009CC-8. "SEC. 3841. RURAL BUSINESS INVESTMENT COMPANIES. "(a) ORGANIZATION.—For the purpose of this subtitle, a rural business investment company shall— "(1) be an incorporated body, a limited liability company, or a limited partnership organized and chartered or otherwise existing under State law solely for the purpose of performing the functions and conducting the activities authorized by this subtitle; "(2)(A) if incorporated, have succession for a period of not less than 30 years unless earlier dissolved by the shareholders of the rural business investment company; and "(B) if a limited partnership or a limited liability company, have succession for a period of not less than 10 years; and "(3) possess the powers reasonably necessary to perform the functions and conduct the activities. "(b) ARTICLES.— The articles of any rural business investment company— "(1) shall specify in general terms— "(A) the purposes for which the rural business investment company is formed; "(B) the name of the rural business investment company; "(C) the area or areas in which the operations of the rural business investment company are to be carried out; "(D) the place where the principal office of the rural business investment company is to be located; and "(E) the amount and classes of the shares of capital stock of the rural business investment company; "(2) may contain any other provisions consistent with this subtitle that the rural business investment company may determine appropriate to adopt for the regulation of the business of the rural business investment company and the conduct of the affairs of the rural business investment company; and "(3) shall be subject to the approval of the Secretary. "(c) CAPITAL REQUIREMENTS.— "(1) IN GENERAL. — Except as provided in paragraph (2), the private capital of each rural business investment company shall be not less than— "(A) $5,000,000; or "(B) $10,000,000, with respect to each rural business investment company authorized or seeking authority to issue participating securities to be purchased or guaranteed by the Secretary under this subtitle. "(2) EXCEPTION.— The Secretary may, in the discretion of the Secretary and based on a showing of special circumstances and good cause, permit the private capital of a rural business investment company described in paragraph (1)(B) to be less than $10,000,000, but not less than $5,000,000, if the Secretary determines that the action would not create or otherwise contribute to an unreasonable risk of default or loss to the Federal Government. "(3) ADEQUACY. —In addition to the requirements of paragraph (1), the Secretary shall— "(A) determine whether the private capital of each rural business investment company is adequate to ensure a reasonable prospect that the rural business investment

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